This is a toughie for me. I get this question more than any other. My answer: It depends.

Here is what I mean. It depends on how your organization regards DEI. Is it viewed as solely a human capital consideration? Is it viewed as a strategic imperative for the organization? Is your organization in the early stages of its DEI journey and understanding? Is there a full comprehension of the interdependency of diversity and equity and inclusion in your orgnaization? These are just a few questions that leaders need to ask, answer and revisit when deciding if they should have a DEI role in the organization and where that role needs to be housed.

My personal opinion has always been that DEI should not be housed in HR. If it is not a stand alone department with a direct line to the COO/CEO, then the next best thing is that it should be housed in the Strategy or Operations. My goal has always been to have DEI sit at a senior executive level within organizations with a direct line to the CEO. Here are some of the reasons I believe this approach to DEI makes a difference:

1. If DEI is housed in HR, it will be shrouded in the HR brand and reputation. HR may be viewed as an area where organizational protection comes first and an equality approach is predominant. There is nothing wrong with this as it is a necessary part of ensuring that companies and organizations can continue to employ people and do the important work they do. For DEI, the orientation to the work is about people and equity, how the organization is attracting talent through its reputation and brand as an inclusive and equitable workplace. It means that the organization understands the historical implications and legacy systems and behaviors that prevent equality from being effective as intended. HR and DEI should work hand in hand but one should not encompass the other. (Note: The writer assumes that the reader understands the difference between equality and equity here.)

2. DEI needs to have a direct reporting line to the top, most senior levels of the organization. The DEI professional working in a company in reporting to the CEO or the COO signals to the organization the importance that DEI plays in the organization. It gives an enterprise level view of the organization identifying opportunities for DEI to impact change through strategic level initiatives, policies, procedures and practices, and it demonstrates an understanding that DEI impacts every corner and crevice of the organization through its people and the systems through which they do their work. DEI is both strategy and implementation. It is both human centered and interdependent operating systems. DEI sits at the intersection of organizational culture, organizational change, and organizational performance. It requires rigorous, relevant data analysis and disciplined implementation. It is a risk mitigator and ripe with its own risks when misunderstood and implemented without the professional discipline required to elicit its intended outcomes.

3. DEI, when it’s embedded in the organization, becomes a mainstay, treated like the other major areas of the organization with a budget that sets up the role/team for success and for longevity. There is an ROI for diversity, equity and inclusion and there needs to be an understanding of the metrics and how those metrics work to truly assess what that ROI is. In my experience, it is difficult to do that when DEI is placed in HR because the other areas that impact that return are no longer (as) visible to the DEI team. In addition, to gain that visibility requires more effort and influence than if DEI was a stand alone department with reporting line to the CEO.

Each organization has to assess what approach is best for them. Your early steps will need to consider the long view and ultimate goals for DEI. Taking early steps with the long view in mind will help leaders determine where best to place DEI in the company. If an organization is focused on human capital and their impact on the organization then HR might be the best place. If leaders are focused on creating an organization that is focused on equitable systems that influence the entire enterprise and its performance then consider placing DEI elsewhere. Inclusive cultures and respectful workplaces attract and retain a diverse workforce and high performing teams have positive impact with stakeholders. Ultimately the goal is to create a space for DEI to do the best work possible.